UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 10-Q

     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended:  APRIL 30, 2006
                                       or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE OF SECURITIES EXCHANGE
ACT OF 1934

For the transition period from ____________________ to ________________________

                         Commission File Number: 0-22011

                         SYNOVICS PHARMACEUTICALS, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

            NEVADA                                              86-0760991
------------------------------                            ----------------------
(STATE OR OTHER JURISDICTION OF                              I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                           IDENTIFICATION NUMBER

2575 E. CAMELBACK RD., SUITE 450  PHOENIX, ARIZONA                 85016
--------------------------------------------------              ------------
 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                        (ZIP CODE)

                                  602-508-0112
              ----------------------------------------------------
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                Yes [ X ] No [ ]

         Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one):

Large accelerated filer [  ] Accelerated Filer [  ]  Non-accelerated filer [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
                                                          Yes [  ]  No [ X ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

As of June 15, 2006, there were 22,681,725 shares of common stock outstanding.

<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
                            INDEX TO QUARTERLY REPORT
                                  ON FORM 10-Q



                                                                            PAGE
PART I - FINANCIAL INFORMATION

ITEM I.  Financial Statements.


                         (UNAUDITED)
         Condensed Consolidated Balance Sheets                              3
         Condensed Consolidated Statements of Operations                    4
         Condensed Consolidated Statements of Cash Flows                    5
         Notes to Condensed Consolidated Financial Statements               6

ITEM 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.                                         15

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk.        20

ITEM 4.  Controls and Procedures.                                           20


PART II - OTHER INFORMATION

ITEM 1.  Legal Proceedings.                                                 21

ITEM 1A. Risk Factors.                                                      21

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds.       21

ITEM 3.  Defaults upon Senior Securities.                                   22

ITEM 4.  Submission of Matters to a Vote of Security Holders.               22

ITEM 5.  Other Information.                                                  22

ITEM 6.  Exhibits.                                                           23

SIGNATURES                                                                   25

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                            APRIL 30,               OCTOBER 31,
                                                                                              2006                      2005
                                                                                       --------------------      -------------------
ASSETS                                                                                      Unaudited                 Audited
<S>                                                                                    <C>                      <C>
CURRENT ASSETS:
  Cash and cash equivalents                                                            $ 1,144,447              $ 128,819
  Inventory                                                                            3,669                    4,010
  Prepaid expenses and other current assets                                            122,035                  137,609
                                                                                       --------------------      -------------------
                                                        Total Current Assets           1,270,151                 270,438
                                                                                       --------------------      -------------------

PROPERTY - Net of accumulated depreciation of $73,013
  and $70,689, respectively                                                            15,259                    4,513
                                                                                       --------------------      -------------------

OTHER ASSETS:
  Deposits on equipment                                                                267,836                   234,494
  Deposits on purchase agreement                                                       200,000                   200,000
  Deferred financing fees                                                              1,983,437                 375,042
  Note receivable - long term                                                          150,000                   -
  Security deposits                                                                    13,348                    -
  Capitalized acquisition costs                                                        108,472                   -
  Patents  - net of accumulated amortization of
   $327,965 and $312,816, respectively                                                 14,585,000                14,600,149
  Investment in InCon Processing, LLC                                                  -                         1,226,919
                                                                                       --------------------      -------------------
                                                        Total Other Assets             17,308,093                16,636,604
                                                                                       --------------------      -------------------
TOTAL                                                                                  $18,593,503               $16,911,555
                                                                                       ====================      ===================
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                                                     $1,244,426                $1,007,570
  Notes payable - shareholders and others                                              1,406,452                 1,452,100
  Convertible bridge notes - current portion                                           1,563,130                 -
  Accrued interest to shareholders                                                     888,604                   731,792
  Other accrued liabilities                                                            901,027                   992,362
                                                                                       --------------------      -------------------
                                                        Total current liabilities      6,003,639                 4,183,824
                                                                                       --------------------      -------------------
LONG-TERM LIABILITIES:
  Convertible bridge notes                                                             2,166,474                 1,423,980
                                                                                       --------------------      -------------------
                                                        Total liabilities              8,170,113                 5,607,804
                                                                                       --------------------      -------------------
STOCKHOLDERS' EQUITY
  Preferred stock - $.001 par value - authorized,  5,000,000 shares;
     591,850 and 591,850 issued and outstanding, respectively
     (liquidation preference of $798,998)                                              798,998                   798,998
  Common stock - $.001 par value - authorized, 45,000,000 shares;
     22,681,725 and 22,681,725 issued and outstanding, respectively                    22,681                    22,681
  Additional paid-in capital                                                           55,384,292                54,802,634
  Warrants                                                                             2,685,560                 511,650
  Accumulated deficit                                                                  (48,283,341)              (44,832,212)
  Common stock in treasury                                                             (184,800)                 -
                                                                                       --------------------      -------------------
                                                        Total stockholders'
                                                        equity                         10,423,390                11,303,751
                                                                                       --------------------      -------------------
TOTAL                                                                                  $18,593,503               $ 16,911,555
                                                                                       ====================      ===================
</TABLE>

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              THREE MONTHS                      SIX MONTHS
                                                                             ENDED APRIL 30,                   ENDED APRIL 30,
                                                                      ------------------------------    ----------------------------
                                                                           2006             2005            2006            2005
                                                                      --------------    ------------    -------------    -----------
<S>                                                                    <C>               <C>             <C>              <C>
REVENUES:                                                             $475              $2,107          $2,115           $5,092
                                                                      --------------    ------------    -------------    -----------

COST OF REVENUES                                                      79                346             335              839
                                                                      --------------    ------------    -------------    -----------

                                       Gross profit                   396               1,761           1,780            4,253
                                                                      --------------    ------------    -------------    -----------

OPERATING EXPENSES:
     Research and development                                         163,639           9,596           324,487          12,956
     Selling, general and administrative                              638,618           239,740         1,381,450        541,090
                                                                      --------------    ------------    -------------    -----------

                                       Total operating expenses       802,257           249,336         1,705,937        554,046
                                                                      --------------    ------------    -------------    -----------


OPERATING LOSS                                                        (801,861)         (247,575)       (1,704,157)      (549,793)
                                                                      --------------    ------------    -------------    -----------

OTHER INCOME (EXPENSES):
     Other income                                                     30,000            2,959           140,000          3,402
     Interest expense, net                                            (517,078)         (2,101)         (844,853)        (2,545)
                                                                      --------------    ------------    -------------    -----------

                                       Total other (expenses)
                                       income                         (487,078)         858             (704,853)        857
                                                                      --------------    ------------    -------------    -----------

NET LOSS FROM CONTINUED OPERATIONS                                    (1,288,939)       (246,717)       (2,409,010)      (548,936)
                                                                      --------------    ------------    -------------    -----------

NET LOSS FROM DISCONTINUED OPERATIONS
     Equity in the loss of InCon Processing, LLC                      (963,685)         (17,075)        (1,042,119)      (229,737)
                                                                      --------------    ------------    -------------    -----------

NET LOSS                                                              $(2,252,624)      $(263,792)      $(3,451,129)     $(778,673)
                                                                      ==============    ============    =============    ===========

BASIC AND DILUTED NET LOSS PER COMMON SHARE
FROM CONTINUED OPERATIONS                                             $(0.06)           $(0.01)         $(0.11)          $(0.03)
                                                                      ==============    ============    =============    ===========


BASIC AND DILUTED NET LOSS PER COMMON SHARE
FROM CONTINUED AND DISCONTINUED OPERATIONS                            $(0.10)           $(0.01)         $(0.15)          $(0.04)
                                                                      ==============    ============    =============    ===========


WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING                                                           22,681,725        19,158,842      22,681,725       17,565,503
                                                                      ==============    ============    =============    ===========
</TABLE>

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                   SIX MONTHS
                                                                                                 ENDED APRIL 30,
                                                                                       ------------------------------------
                                                                                            2006                 2005
                                                                                       ----------------     ---------------
<S>                                                                                    <C>                  <C>
OPERATING ACTIVITIES:
Net loss                                                                               $(3,451,129)         $(778,673)
Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation and amortization                                                        17,473               15,770
  Equity in the loss of joint venture                                                  1,042,119            229,737
  Stock based compensation                                                                                  43,750
  Amortization of bridge loan discount                                                 553,651              -
  Changes in operating assets and liabilities:
      Inventory                                                                        342                  857
      Prepaids and other current assets                                                15,574               (207,450)
      Other assets                                                                     (13,349)             -
      Accounts payable                                                                 236,856              102,290
      Accrued liabilities                                                              65,477               (90,350)
                                                                                       ----------------     ---------------
Net cash used in operating activities                                                  (1,532,986)          (684,069)
                                                                                       ----------------     ---------------

INVESTING ACTIVITIES:

  Capital expenditures                                                                 (46,413)             -
  Deferred fees associated with acquisition activities                                 (108,472)            -
                                                                                       ----------------     ---------------
Net cash provided by investing activities                                              (154,885)
                                                                                       ----------------     ---------------

FINANCING ACTIVITIES:
  Issuance of common stock                                                             -                    202,500
  Proceeds from debt                                                                   3,000,000            -
  Fees from debt issuance                                                              (250,853)            -
  Repayment of debt                                                                    (45,648)             -
                                                                                       ----------------     ---------------
Net cash provided by financing activities                                              2,703,499            202,500
                                                                                       ----------------     ---------------

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS                                                                       1,015,628            (481,569)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                         128,819              629,257
                                                                                       ----------------     ---------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                               $1,144,447           $147,688
                                                                                       ================     ===============

SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING
ACTIVITIES:
  Settlement of debt through issuance of common stock                                               $0             $49,500
                                                                                       ================     ===============

 Rights to technology acquired through issuance of common stock                                     $0         $13,800,000
                                                                                       ================     ===============
</TABLE>

<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note A -          BASIS OF PRESENTATION
                           The  accompanying  unaudited  Condensed  Consolidated
                  Financial  Statements of Synovics  Pharmaceuticals,  Inc. (the
                  "Company")  have been prepared in accordance  with  accounting
                  principles  generally accepted in the United States of America
                  for interim financial information and the instructions to Form
                  10-Q. Accordingly, they do not include all the information and
                  footnotes required by accounting principles generally accepted
                  in  the  United  States  of  America  for  complete  financial
                  statements.  In the  opinion of  management,  all  adjustments
                  (which include only normal recurring adjustments) necessary to
                  present fairly the financial  position,  results of operations
                  and cash flows for all periods  presented  have been made. The
                  results  of  operations  for  the  three-month  and  six-month
                  periods ended April 30, 2006 are not necessarily indicative of
                  the operating results that may be expected for the entire year
                  ending   October   31,   2006.   These   unaudited   condensed
                  consolidated   financial   statements   should   be   read  in
                  conjunction  with  the  Company's  financial   statements  and
                  accompanying  notes  thereto  as of and  for  the  year  ended
                  October 31,  2005.  The  accompanying  condensed  consolidated
                  financial  statements  have been  prepared on a going  concern
                  basis,  which  contemplates  the realization of assets and the
                  satisfaction  of liabilities in the normal course of business.
                  The  Company  has  incurred  accumulated  operating  losses of
                  $48,283,341  through  April 30,  2006 which  have been  funded
                  through the issuance of stock and debt. The losses incurred to
                  date,   the   uncertainty   regarding  the  ability  to  raise
                  additional  capital and the  Company's  inability  to generate
                  gross profits and positive cash flows from operations indicate
                  that  the  Company  may  not be able  to  continue  as a going
                  concern for a reasonable period of time.

Note B -          NET LOSS PER COMMON SHARE
                           Basic net loss per share is computed by dividing  the
                  net loss by the  weighted  average  number  of  common  shares
                  outstanding during the presented periods. Diluted net loss per
                  share has not been presented as it was anti-dilutive.  Options
                  and warrants are excluded  from the diluted net loss per share
                  calculation, as they are anti-dilutive.

Note C -          LICENSE AGREEMENT
                           The  Technology   License   Agreement  (the  "License
                  Agreement")  dated March 16, 2005  entered  into with  Nostrum
                  Pharmaceuticals, Inc. ("Nostrum") and the Company, replaced in
                  its entirety  the Product  Development  and License  Agreement
                  dated  as  of  June  16,  2004.   Under  the  revised  License
                  Agreement,  the  Company  received  an  exclusive  license  to
                  develop and  commercialize ten 505(b)(2)  products  (brandable

<PAGE>

                  pharmaceutical  products  that  qualify  for  filing  with the
                  United States Food and Drug Administration (the "FDA") under a
                  "505(b)(2)"  application  and ten  generic  products  (generic
                  bio-equivalents  of branded  products which qualify for filing
                  with the FDA pursuant to an Abbreviated New Drug Application))
                  under  the  Nostrum  Technology  (as  defined  in the  License
                  Agreement)  within a three year period.  As consideration  for
                  the License Agreement, the Company issued 12 million shares of
                  its common stock,  and agreed to pay Nostrum  royalties on net
                  sales of generic products equal to 50% of gross profit.  As of
                  April 30, 2006, the Company has paid  $1,713,637 to Nostrum as
                  remuneration  for research and  development  costs  associated
                  with the licensed technology.

Note D -          PURCHASE AGREEMENT
                           In July 2005,  the  Company  entered  into a Purchase
                  Agreement  (the "Kirk  Purchase  Agreement")  to acquire  Kirk
                  Pharmaceuticals,   LLC,  and  its  affiliate,  ANDAPharm,  LLC
                  (collectively,   "Kirk")  for   $12,000,000   in  cash  and  a
                  promissory  note.  Kirk  is  a  Florida  based  pharmaceutical
                  company that manufactures over-the-counter ("OTC") and generic
                  prescription drugs in its FDA and DEA approved facility.  Kirk
                  currently  manufactures  and/or  markets 30 OTC solid dose and
                  soft gel  pharmaceuticals  under  current  Good  Manufacturing
                  Practices  ("cGMP")  guidelines.  Kirk was founded in 1999 and
                  has grown to more than 100 people and occupies  70,000  square
                  feet of manufacturing space.

                           On  May  25,  2006,  the  Company   consummated   the
                  acquisition  of Kirk,  and is  currently  working  with Kirk's
                  existing  management  to  integrate  the  two  companies.  The
                  Company anticipates that Kirk will provide potential cash flow
                  from its  operations  to fund  some of the  Company's  planned
                  clinical  trials  and  will  be the  designated  manufacturing
                  facility for the Company.

Note E - PLACEMENT AGENCY AGREEMENT
                           On  September  27, 2005,  the Company  entered into a
                  Placement  Agency  Agreement  with  Indigo  Securities  LLC, a
                  Delaware limited liability company ("Indigo") whereby,  Indigo
                  agreed to act as the Registrant's agent in connection with (i)
                  the sale by the  Registrant of from  $5,000,000 to $10,000,000
                  million,  face amount of the Company's 10% Senior Notes, to be
                  offered  together  with  warrants,  (ii) the sale (the "Bridge
                  Financing") by the Company of up to $2,500,000, face amount of
                  the  Company's  9%  Convertible   Bridge  Notes  (the  "Bridge
                  Notes"),  to be offered  together  with  warrants (the "Bridge
                  Warrants")  and  (iii)  the  sale by the  Company  of up to $5
                  million of Series A  Convertible  Preferred  Stock  ("Series A
                  Preferred  Stock") of the Company together with warrants,  all
                  of which will be offered on terms and  conditions  agreed upon
                  by the Parties.  As of the date herein, the Company has issued
                  $3,345,000

<PAGE>

                  under the 9% Convertible Bridge Notes. No Series A Convertible
                  Preferred Stock has been issued.

                           As a result of the consummation of the acquisition of
                  Kirk which was  financed  through  the Bank of India,  and the
                  $6,000,000 equity investment with Maneesh  Pharmaceuticals PVT
                  LTD.  ("Maneesh"),  the  Company  may be required to repay its
                  currently  outstanding Bridge Notes. The Company has solicited
                  the  consent of the  holders  of the  Bridge  Notes to convert
                  their Bridge Notes into,  and exchange their Bridge Notes for,
                  an  amended  form of  convertible  note (the  "Revised  Note")
                  accruing  interest at the rate of 9% per annum and convertible
                  into shares of Common Stock at the  conversion  price of $2.50
                  per share.  The Revised Note shall mature on April 3, 2009 and
                  constitute unsecured indebtedness of the Company.

Note F - INDIGO PLACEMENT AGENCY WARRANTS

                           On February 3, 2006,  Indigo  Ventures LLC,  issued a
                  promissory  Note in the amount of  $150,000 to the Company for
                  the  purchase of 500,000  warrants  with an exercise  price of
                  $5.00 per share  and a term of 3 years.  The note will  accrue
                  interest  at a rate of 4.19%  per annum  compounded  annually,
                  commencing  one hundred  eighty (180) days from the  execution
                  date of the note,  and shall be due and  payable on  September
                  27, 2010.  All amounts due under this note shall be secured by
                  the Maker's warrant for 500,000 shares of the Company's stock.
                  Following  any Event of Default and  foreclosure,  the Company
                  shall have the absolute right to dispose of the warrant in any
                  manner it chooses in order to satisfy  the  obligation.  These
                  warrants  were  valued at  $991,924  using  the Black  Scholes
                  Model, assuming a life of three years, volatility of 198%, and
                  a risk  free  borrowing  rate of 4.9% and will be  charged  to
                  interest expense over the life of the note commencing in 2006.

                           On April 30, the Company  issued  75,263  warrants to
                  Indigo Ventures, LLC as additional  compensation for the gross
                  proceeds of  $3,345,000  raised under the  Convertible  Bridge
                  Loan.  These  warrants were valued at $213,691 using the Black
                  Scholes Model,  assuming a life of three years,  volatility of
                  172%,  and a risk  free  borrowing  rate of 4.9%  and  will be
                  charged to interest  expense over the life of the bridge notes
                  commencing in 2006.

Note G -          PURCHASE AND SALE AGREEMENT
                           InCon Technologies,  Inc., a wholly-owned  subsidiary
                  of the Company,  and Asia Pacific Investment  Holdings Limited
                  (collectively,  the  "Sellers"),  entered  into a Purchase and
                  Sale  Agreement,  dated as of  October  31,  2005 (the  "InCon
                  Purchase Agreement"),  pursuant to which the Sellers agreed to
                  sell their respective fifty percent (50%) ownership  interests
                  in InCon Processing,  LLC ("InCon"),  to InCon  International,
                  Inc.

<PAGE>

                  in exchange for all of the membership  units of Bali Holdings,
                  LLC ("Bali")  which are owned by N.P.  Shaikh  ("Shaikh")  and
                  John  R.  Palmer  ("Palmer").  The  sale  was  made  upon  the
                  Company's  determination that InCon's operations,  high vacuum
                  distillation,  production  toll work and process  development,
                  would no longer  comprise a material  element in the Company's
                  business strategy.

                           Pursuant to the Purchase Agreement,  the Sellers have
                  agreed to provide  consulting  services to InCon for a term of
                  three (3) years in consideration  for an annual consulting fee
                  in the  amount of the  lesser  of:  (a) One  Hundred  Thousand
                  Dollars  ($100,000.00)  and (b)  twenty-five  percent (25%) of
                  InCon's annual earnings before interest,  taxes,  depreciation
                  and amortization  over the five (5) years beginning on October
                  31, 2005 ("Consulting Fee");  provided however, that the total
                  payments to each of the  Sellers in respect of the  Consulting
                  Fee  shall  not  exceed   Three   Hundred   Thousand   Dollars
                  ($300,000.00).  The  Consulting  Fee  is  subject  to  certain
                  acceleration provisions as provided in the Purchase Agreement.

                           As a  condition  to the  Closing of the sale of InCon
                  membership  interests,  InCon is  obligated  to  complete  the
                  development of certain tocotrienol  processing technology (the
                  "Technology")  and to convey  the sole  right,  ownership  and
                  interest in the Technology to the Sellers who shall thereafter
                  have  the  exclusive  right  to  patent,  license  or sell the
                  Technology in its sole  discretion.  On April 30, 2006,  InCon
                  delivered  the  Technology  to the  Sellers,  and the  Sellers
                  assigned and  transferred all rights,  title,  and interest in
                  InCon  Processing  to InCon  International,  Inc.  The Company
                  recorded the disposition of its investment in InCon by valuing
                  the 56,000 shares that it received in treasury  stock at $3.30
                  per share, or $184,800  aggregately,  and recognized a loss on
                  investment  of $923,839.  The Company did not assign any value
                  to the Technology received, as it still requires a substantial
                  investment by the Company before it can be patented.

Note H -          LEASED FACILITIES
                            The Company  leases  office space in Edison,  NJ and
                  Phoenix,  AZ. Total monthly rent is approximately $9,300 under
                  the lease agreements, which expire at various dates throughout
                  2009.

Note I -          COMPANY NAME CHANGE
                           On April 11,  2006,  the  Company  announced  that it
                  completed the process of changing its name and was now trading
                  under the symbol  "SYVC" on the  bulletin  board.  The Company
                  previously announced that it had begun the process of changing
                  its name from  Bionutrics,  Inc. to Synovics  Pharmaceuticals,
                  Inc. by filing a  Preliminary  14C with the SEC on Feb 3, 2006
                  and by filing a Definitive 14C on March 2, 2006.

<PAGE>

Note J -          SUBSEQUENT OR SIGNIFICANT EVENTS
                           On May 17, 2006,  the Company  announced  that it had
                  obtained  ownership  of an  Abbreviated  New Drug  Application
                  (ANDA)  filed with the FDA for an Extended  Release (XR) 500mg
                  dosage of Metformin (the Product") as part of an ANDA transfer
                  and licensing agreement with Nostrum Pharmaceuticals, Inc.

                           Nostrum will cooperate with the Company in all phases
                  of the work to be  performed  under the  licensing  agreement,
                  including,  necessary studies,  validations, and tests related
                  to the Product.  Until the Company has received  ANDA approval
                  for the  Product,  Nostrum  is to make the  Nostrum  personnel
                  directly  involved  with the Product  available  to advise and
                  consult about its  development and  manufacture.  Nostrum also
                  agrees that its  President  will be  personally  available  to
                  consult and advise  during all aspects of the  development  of
                  the ANDA for the Product.  The Company is to reimburse Nostrum
                  for  its  reasonable   out-of-pocket   expenses   incurred  in
                  performance  of the  obligations  set forth in Section  3.1(c)
                  Metformin Licensing Agreement.

                           In May 2006,  in partial  consideration  for granting
                  the license, the Company paid $150,000 to Nostrum. The Company
                  has agreed to make milestone payments in further consideration
                  for the license granted,  and the following such payments will
                  be made within 30 days of achieving each milestone:

                           (i)      One  hundred  and  fifty  thousand   dollars
                                    ($150,000)  USD upon the receipt of approval
                                    for ANDA 76-756;

                           (ii)     The   Company   agrees  to  pay  to  Nostrum
                                    royalties  on net  sales of  product  in the
                                    Territory  equal to twenty  percent (20%) of
                                    net  sales up to a  maximum  of one  million
                                    five hundred thousand ($1,500,000).

                  In May 2006, the Company  consummated  its acquisition of Kirk
                  Pharmaceuticals,   LLC  and  its  subsidiary.   The  aggregate
                  purchase  price was  $12,000,000  (the  "Purchase  Price") (i)
                  $9,000,000 (the "Cash Purchase Price") at the closing and (ii)
                  a  promissory  note  (the  "Kirk  Acquisition  Note")  in  the
                  principal  amount of  $3,000,000.  The Kirk  Acquisition  Note
                  constitutes a general unsecured obligation of the Company.

                  Immediately  prior to the closing of the  acquisition of Kirk,
                  the Company  consummated  two  financings  to satisfy the Cash
                  Purchase  Price  and  its  working  capital  requirements,  as
                  follows:  (i) a credit  facility with Bank of

<PAGE>

                  India,  New York Branch (the "Bank of India  Financing");  and
                  (ii) the sale of 1,500,000  shares of common stock,  par value
                  $0.001  per share  (the  "Common  Stock"),  of the  Company to
                  Maneesh,  an  India-based  accredited  investor (as defined in
                  Rule 501 (a) of Regulation D under the Securities Act of 1933,
                  as amended (the "Securities Act")) (the "Maneesh Investment").

                  The Bank of India  Financing is structured  as senior  secured
                  indebtedness  in the  principal  amount (the  "Principal")  of
                  $10,500,000.  Of the Principal,  $5,250,000 was required to be
                  utilized to satisfy a portion of the Cash  Purchase  Price and
                  $5,250,000  was  required to be utilized  for working  capital
                  purposes (the "Working  Capital Loan").  Of the portion of the
                  Principal  that  represented  the Working  Capital  Loan,  the
                  Company  is  entitled  to  borrow  from time to time an amount
                  equal to 70% of the value of fully paid inventory and accounts
                  receivable  of the  Company  together  with  100%  of  cash in
                  accounts maintained by the Company and its subsidiaries at the
                  Bank of India, or $5,250,000,  which ever is less. The Bank of
                  India  accrues  interest  at the  prime  rate of  interest  as
                  determined by the Bank of India plus 1.0%. In the event of any
                  default,  such interest rate shall  increase to the prime rate
                  of interest as determined by Bank of India plus 3.0%. Interest
                  is  payable  monthly.  The  Principal  is to be  repayed  with
                  payments that increase over time through December 31, 2010.

                  Prepayments  will  incur be  subject to a fee equal to 1.0% of
                  the amount prepaid for each year or portion thereof  remaining
                  between the date of prepayment and December 31, 2010.

                  The  obligations of the Company to the Bank of India Financing
                  have   been   guaranteed   jointly   and   severally   by  its
                  subsidiaries.  The Bank of India has a first priority security
                  interest in the subsidiaries and assets.

                           An officer of the  Company  has also  guaranteed  the
                  obligations to the Bank of India.

                           Simultaneously with the closing of the acquisition of
                  Kirk and the Bank of India Financing,  the Company consummated
                  the sale of the  above  mentioned  1,500,000  shares of common
                  stock to  Maneesh.  The  purchase  price was $4.00 per  share,
                  resulting in proceeds of $6,000,000. The Company has agreed to
                  pay  broker  fees  in the  amount  of  $525,000  in for  their
                  services provided relative to the Bank of India financing, and
                  $180,000  in  cash  for  services   provided  in  the  Maneesh
                  Investment.  In  addition,  the  Company  has  agreed to issue
                  300,000  warrants with an exercise  price of $6.00 and term of
                  three years for Introduction  Services relative to the Maneesh
                  Investment,  as well as $180,000 in cash plus 45,000  warrants
                  as a finder's fee for the Maneesh Investment.

<PAGE>

                           As a result of the  consummation of the Bank of India
                  Financing  and the  Maneesh  Investment,  the  Company  may be
                  required to repay its currently  outstanding Bridge Notes. The
                  Company has solicited the consent of the holders of the Bridge
                  Notes  to  convert  their  Bridge  Notes  into  revised  notes
                  accruing  interest at the rate of 9% per annum and convertible
                  into shares of Common Stock at the  conversion  price of $2.50
                  per share. The revised notes would mature on April 3, 2009 and
                  constitute unsecured indebtedness of the Company.

                           On May 23, 2006, the Company  provided written notice
                  that it was terminating its Placement  Agency  Agreement.  All
                  fees paid thereto by the Company  under the  Placement  Agency
                  Agreement in connection  with the Bridge Note Placement are to
                  be retained by the Placement Agency.

<PAGE>


                         SYNOVICS PHARMACEUTICALS, INC.

ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATIONS

THE FOLLOWING  DISCUSSION OF THE  COMPANY'S  FINANCIAL  CONDITION AND RESULTS OF
OPERATIONS  INCLUDES  CERTAIN  FORWARD-LOOKING  STATEMENTS.  WHEN  USED  IN THIS
REPORT,  THE WORDS "EXPECTS,"  "INTENDS,"  "PLANS" AND "ANTICIPATES" AND SIMILAR
TERMS ARE  INTENDED TO IDENTIFY  FORWARD-LOOKING  STATEMENTS  THAT RELATE TO THE
COMPANY'S FUTURE  PERFORMANCE.  SUCH STATEMENTS INVOLVE RISKS AND UNCERTAINTIES.
THE COMPANY'S  ACTUAL RESULTS MAY DIFFER  MATERIALLY FROM THE RESULTS  DISCUSSED
HERE.  FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE  INCLUDE,  BUT ARE NOT LIMITED
TO, THOSE DISCUSSED UNDER "RISK FACTORS" IN THE COMPANY'S FORM 10-K.

OUR BUSINESS

         Synovics Pharmaceuticals,  Inc. is a pharmaceutical company focusing on
the  development  of  oral   controlled-release   drug  formulations   utilizing
proprietary  drug  formulations  and  delivery  technologies.  The  Company  has
licensed proprietary  oral-control release technology with the rights to develop
exclusively  and  worldwide,  ten  generic  and ten  505(b)(2)  drugs  (improved
formulations of previously  approved  drugs).  The Company intends to invest the
majority of its  resources in the  development  and  commercialization  of these
products during the next few years.

GENERAL

         The  Company is a  development  stage  company  and is  anticipating  a
prolonged  period of losses  and  negative  cash  flows  while it  develops  and
commences  commercialization  of its  planned  products.  The  Company's  future
operating results will depend largely on its ability to achieve the following:

         -        Debt  and  equity   financing  to  support  the  research  and
                  development activities
         -        Successful integration of Kirk Pharmaceuticals and ANDAPharm
         -        Successful development and testing of product candidates
         -        Receipt of required  regulatory  approvals  related to product
                  candidates
         -        Commercialization of the Company's products
         -        Gaining a competitive position in the market

DEVELOPMENTS DURING THE THREE MONTHS ENDED APRIL 30, 2006

         In March 2006, the Company  announced that it has initiated the process
for  its  second  controlled-release  generic  drug  candidate,  SNG1002a,  with
chemical,  manufacturing  and control ("CMC")  development.  Concomitantly,  the
Company is conducting biostudies to demonstrate  "bioequivalency" as the Company
moves this second product towards commercialization.  These efforts are intended
to provide

<PAGE>

confirmation of the formulation and biostudies  previously  undertaken in India.
Successful  completion of development  efforts on drug  candidates  SNG1001a and
SNG1002a are  anticipated  to result in the  Company's  first two in a series of
Abbreviated New Drug Application  ("ANDA")  filings with the FDA.  SNG1002a is a
formulated  generic  version  of a  branded  drug in a  chemical  category  with
annualized US sales in excess of $800 million (IMS).

FOCUS FOR REMAINDER OF 2006

         The  Company's  primary focus for the remainder of 2006 will be to work
with Kirk  Pharmaceuticals'  existing management to integrate the two companies.
The Company will also  continue its efforts to secure debt and equity  financing
to support  operations,  further its  "bioequivalency"  studies of SNG1001a  and
SNG1002a,  as well as to further its research and  development  program on other
drug  candidates  in order to be in a position to realize the  potential  of its
licensed technology.

RESULTS OF OPERATIONS

THREE  MONTHS  ENDED APRIL 30, 2006  COMPARED  WITH THREE MONTHS ENDED APRIL 30,
2005.

         Consolidated  gross  revenues for the quarter  ended April 30, 2006 was
$500 compared to $2,100 for the same quarter in 2005.

         The Company has been  unprofitable  since  inception,  and continues to
generate limited revenue as the Company's subsidiary, Bionutrics Health Products
Inc.,  sells through its remaining  evolvE(R)  inventory,  a product which is no
longer  being  marketed  or  developed  due to the  Company's  shift in business
strategy from the discovery and  development  of  pharmaceutical  and functional
nutrition   products  to  the  development  of  oral   controlled-release   drug
formulations  utilizing proprietary drug formulation and delivery  technologies.
The Company does not anticipate sales from evolvE(R) beyond this fiscal year.

         The Company expects to continue to incur operating losses as it invests
in product  development  and clinical trials  research.  The Company is pursuing
potential  development  and  marketing  arrangements  with other  pharmaceutical
companies  regarding its licensed products.  However,  there can be no assurance
that the Company will be  successful  in these  efforts or that any  arrangement
would generate sufficient revenue to fund operations.

         Cost of  revenues  for the three  months  ended April 30, 2006 was $100
compared to $400 for the same three months in 2005.

         Research and development  expenses for the three months ended April 30,
2006 was $164,000  compared to $10,000 for the same three  months in 2005.  This
increase is due to the remuneration of research and development costs associated
with the Nostrum  licensed  technology  of $114,000,  as well as $50,000 in fees
associated with the development of SNG1001a.

<PAGE>

         Operating  expenses  for the three  months  ended  April  30,  2006 was
$639,000  compared to $240,000.  This  increase is due  primarily to $256,000 in
salary expense for increased  staffing  needs,  $133,000 in consulting  expense,
$82,000  in  travel,  and  $77,000  in  legal,  all of which  are  necessary  to
accomplish the Company's business objectives and increased business activities.

         On April 30,  2006,  the Company  disposed of its  investment  in InCon
Processing,  LLC. The Company  recorded the  disposition  of its  investment  by
valuing the 56,000 shares that it received in treasury stock at $3.30 per share,
or $184,800  aggregately,  and  recognized a loss on investment of $923,839.  In
addition to the treasury stock,  the Company also received the rights to certain
tocotrienol  technology;  however,  the  Company did not assign any value to the
technology  received,  as it still  requires  a  substantial  investment  by the
Company before it can be patented.

         The net loss of  $2,253,000,  or $.10 per share,  for the three  months
ended April 30, 2006 was due  primarily to the  Company's  inability to generate
sufficient cash flow to support operations.  The Company also expects cumulative
losses to increase due to its research and development activities related to the
License Agreement with Nostrum.

SIX MONTHS ENDED APRIL 30, 2006 COMPARED WITH SIX MONTHS ENDED APRIL 30, 2005.

         Consolidated  gross  revenues for the quarter  ended April 30, 2006 was
$2,100 compared to $5,100 for the same quarter in 2005.

         Cost of  revenues  for the six  months  ended  April 30,  2006 was $300
compared to $800 for the same six months in 2005.

         Research  and  development  expenses for the six months ended April 30,
2006 was  $325,000  compared  to $13,000  for the same six months in 2005.  This
increase is due to the remuneration of research and development costs associated
with  the  Nostrum  licensed  technology  as well as fees  associated  with  the
development of SNG1001a.

         Operating  expenses  for  the six  months  ended  April  30,  2006  was
$1,381,000  compared to $541,000.  This increase is due primarily to $564,000 in
salary  expense for  increased  staffing  needs,  $127,000 in  recruiting  fees,
$199,000  in  consulting  expense,  $127,000 in travel,  $149,000 in legal,  and
$74,000 in  accounting,  all of which are necessary to accomplish  the Company's
business objectives and increased business activities.

         On April 30,  2006,  the Company  disposed of its  investment  in InCon
Processing,  LLC. The Company  recorded the  disposition  of its  investment  by
valuing the 56,000 shares that it received in treasury stock at $3.30 per share,
or $184,800  aggregately,  and  recognized a loss on investment of $923,839.  In
addition to the treasury stock,  the Company also received the rights to certain
tocotrienol  technology;  however  the  Company  did not assign any value to the
technology  received,  as it still  requires  a  substantial  investment  by the
Company before it can be patented.

<PAGE>

         The net loss of  $3,451,000,  or $.15 per share,  for six months  ended
April  30,  2006  was due  primarily  to the  Company's  inability  to  generate
sufficient cash flow to support operations.  The Company also expects cumulative
losses to increase due to its research and development activities related to the
License Agreement with Nostrum.

         The  Company  did  not  engage  in any  unusual,  infrequent  event  or
transaction or any significant economic changes that would materially affect the
amount of income reported from continuing operations. Nor did the Company engage
in any off-balance sheet transactions.

LIQUIDITY AND CAPITAL RESOURCES

         To  date,  the  Company's  operations  have  not  generated  sufficient
revenues to satisfy  the  Company's  operating  capital  needs.  The Company has
financed its operations primarily through the sale of its common stock, warrants
and debt by means of  private  placements.  The  Company  had a working  capital
deficit of $4,734,000  at April 30, 2006 as compared with  $3,913,000 at October
31, 2005.  Cash and cash  equivalents  were  $1,145,000  at April 30,  2006,  as
compared with $129,000 at October 31, 2005, an increase of $1,016,000.

         Net cash used in operating activities during the six-month period ended
April 30, 2006 was  $1,533,000.  This  resulted  from the  Company's net loss of
$3,451,000,  offset in part by certain  non-cash items  attributable to expenses
including,  but not  limited  to the  disposition  of its  investment  in  InCon
Processing  of  $1,042,000,  amortization  of bridge note  discount of $554,000,
depreciation  expense  of  $17,000,  and an  increase  in  accounts  payable  of
$237,000. The Company has generally incurred negative cash flows from operations
since inception,  which will continue due to research and development activities
related to the License Agreement with Nostrum.

         Net cash used in investing activities during the six months ended April
30, 2006 was $155,000.  This resulted from capital  expenditures of equipment of
$46,000 and deferred fees associated with the Kirk acquisition of $108,000.

         Net cash provided by financing  activities  during the six months ended
April 30,  2006 was  $2,703,000,  which  resulted  from the  proceeds of debt of
$3,000,000,  less fees  associated  with the debt issuance of $251,000,  and the
repayment of $46,000 in debt.

         The  Company  did not  enter  into  any  material  capital  expenditure
agreements,  nor did it engage in any off  balance  sheet  financing  during the
reporting period.

The following table depicts our obligations and commitments as of April 30, 2006
to make future payments under existing contracts or contingent commitments.

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                PAYMENTS DUE BY PERIOD
------------------------------------------------------------------------------------------------------------
                                                        LESS THAN 1                              AFTER 5
------------------------------------------------------------------------------------------------------------
CONTRACTUAL OBLIGATIONS                      Total         YEAR        1-3 YEARS    4-5 YEARS     YEARS
------------------------------------------------------------------------------------------------------------
<S>                                         <C>         <C>                <C>          <C>         <C>
Short - Term Debt Obligations
includes interest through 04/30/06          $2,424,001  $2,424,001         $0           $0          $0
------------------------------------------------------------------------------------------------------------
Current Portion of Long-Term
Obligations include interest thru
04/30/06                                     1,576,968   1,576,968
------------------------------------------------------------------------------------------------------------
Long - Term Obligations includes
Interest thru 04/30/06                       2,330,137       0           2,180,137   150,000         0
------------------------------------------------------------------------------------------------------------
Total                                       $6,331,106   $4,000,969     $2,180,137  $150,000        $0
------------------------------------------------------------------------------------------------------------
</TABLE>

         In  February  2006,  the  Company  completed  a  private  placement  of
convertible notes and warrants (the "February Financing"). The gross proceeds of
the February Financing totaled $100,000. Pursuant to the February Financing, the
Company issued $100,000 of principal amount of 9% convertible  notes,  which are
convertible  into an  aggregate  of 33,333  shares of Company  common stock at a
price of $3.00 per share, and warrants to purchase an aggregate of 16,666 shares
of  Company  common  stock at $4.00 per share.  These  warrants  were  valued at
$32,583  using  the  Black  Scholes  Model,  assuming  a life  of  three  years,
volatility of 550%,  and a risk free borrowing rate of 3.25% and will be charged
to interest  expense over the life of the debt commencing in 2006. In connection
with this financing, the Company paid a cash private placement fee of $9,000.

         In April 2006, the Company completed a private placement of convertible
notes and  warrants  (the "April  Financing").  The gross  proceeds of the April
Financing  totaled  $1,550,000.  Pursuant  to the April  Financing,  the Company
issued  $1,550,000  of  principal  amount  of 9%  convertible  notes,  which are
convertible  into an  aggregate of 516,667  shares of Company  common stock at a
price of $3.00 per share,  and  warrants  to purchase  an  aggregate  of 258,333
shares of Company common stock at $4.00 per share. These warrants were valued at
$557,900  using  the  Black  Scholes  Model,  assuming  a life of  three  years,
volatility of 489%,  and a risk free borrowing rate of 4.88% and will be charged
to interest  expense over the life of the debt commencing in 2006. In connection
with this financing, the Company paid a legal and fees $82,000.

All  trends,  demands,  commitments,  events and  uncertainties  resulting  in a
material increase or decrease in liquidity have been reported.  All internal and
external sources of liquidity have been identified, and all material commitments
of capital expenditures as of the end of the quarter have been identified.


FUTURE CAPITAL REQUIREMENTS

         All of the  Company's  product  candidates  are in the early  stages of
research and development,  and will require  additional  research,  development,
clinical  testing,   regulatory  approval,   and  a  commitment  of  significant
additional resources prior to commercialization.  Based on its current operating
plan,  the Company has  sufficient  capital  resources  to meet its  obligations
through the third quarter of 2006. The Company

<PAGE>

requires  additional  funding in order to move  forward  with our  research  and
development plan. The Company has reasonable assumptions that additional debt or
equity  financing may be available;  however,  it can provide no assurance  that
such funding will be obtained.  The Company's future capital  requirements  will
depend on many factors, including the following:

         -        Continued scientific progress in its research,  drug discovery
                  and development plans
         -        Size of its program and progress with clinical trials
         -        Time and costs associated with regulatory approvals
         -        Recruitment of key management

REGULATORY APPROVAL

         The Company must conduct  time-consuming  and costly clinical trials to
show  safety and  efficacy in each of its  product  candidates  before a product
candidate  may be  approved  for  distribution.  The  clinical  trials  must  be
conducted in accordance with the FDA  regulations.  If the FDA believes that the
Company has not  sufficiently  demonstrated  safety and  efficacy in its product
candidates,  it will not  approve  them,  or will  require  additional  clinical
studies,  which will require additional time and resources.  The Company may not
be able to obtain the necessary  regulatory  approval on a timely  basis,  if at
all, for any of its product  candidates.  Failure to receive these  approvals or
delays in the approvals may prevent or delay commercialization of a product, and
as a result,  could negatively impact the Company's ability to generate revenue.
The Company can give no assurances  that any of its product  candidates  will be
safe and effective,  will be approved for commercialization,  or that it will be
successful in the commercialization of these products.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

         The  Company  does  not  invest  in or own any  market  risk  sensitive
instruments entered into for trading purposes or for purposes other than trading
purposes.  All loans to the Company  have been made with fixed  interest  rates,
and, accordingly,  the market risk to the Company prior to the maturity of those
instruments is minimal.

ITEM 4.  CONTROLS AND PROCEDURES.

         The  Company's   management  is  responsible   for   establishing   and
maintaining a system of disclosure  controls and  procedures (as defined in Rule
13a-15(e) and 15d-15(e)  under the Exchange Act) that is designed to ensure that
information  required to be  disclosed  by the  Company in the reports  that the
Company  files  or  submits  under  the  Exchange  Act is  recorded,  processed,
summarized and reported,  within the time periods  specified in the Commission's
rules and forms. Disclosure controls and procedures include, without limitation,
controls  and  procedures  designed  to ensure that  information  required to be
disclosed  by an  issuer  in the  reports  that it files or  submits  under  the
Exchange  Act  is  accumulated  and  communicated  to the  issuer's  management,
including

<PAGE>

its principal  executive officer or officers and principal  financial officer or
officers,  or persons  performing  similar  functions,  as  appropriate to allow
timely decisions regarding required disclosure.

         In accordance with Exchange Act Rules 13a-15 and 15d-15,  an evaluation
was completed under the supervision and with the  participation of the Company's
management,  including  the Company's  President,  Chief  Financial  Officer and
Secretary,  of the  effectiveness  of the design and  operation of the Company's
disclosure  controls and  procedures as of the end of the period covered by this
Quarterly Report.  Based on that evaluation,  the Company's management including
the  President,  Chief  Financial  Officer  and  Secretary,  concluded  that the
Company's disclosure controls and procedures are effective to provide reasonable
assurance  that  information  required to be disclosed in the Company's  reports
filed or submitted  under the Exchange Act is recorded,  processed,  summarized,
and reported  within the time periods  specified in the  Commission's  rules and
forms. There have been no significant changes to the Company's internal controls
or other factors that could significantly affect internal controls subsequent to
the period covered by this Quarterly Report.


                           PART II - OTHER INFORMATION


ITEM 1.        LEGAL PROCEEDINGS.

         The  Company  is not party to any  legal  proceedings  that  management
believes would have a material adverse effect on the business of the Company.

ITEM 1A.       RISK FACTORS.

         The  Company  has  had no  material  changes  to its  risk  factors  as
previously  disclosed  in its Form 10-K filed with the  Securities  and Exchange
Commission on January 30, 2006.


ITEM 2.        UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

         In February 2006,  the Company  completed the February  Financing.  The
gross  proceeds of the  February  Financing  totaled  $100,000.  Pursuant to the
February  Financing,  the  Company  issued  $100,000 of  principal  amount of 9%
convertible  notes,  which are convertible into an aggregate of 33,333 shares of
Company common stock at a price of $3.00 per share,  and warrants to purchase an
aggregate of 16,666  shares of Company  common  stock at $4.00 per share.  These
warrants were valued at $32,583 using the Black Scholes  Model,  assuming a life
of three years,  volatility of 550%, and a risk free borrowing rate of 3.25% and
will be charged to  interest  expense  over the life of the debt  commencing  in
2006. In connection with this financing, the Company paid a

<PAGE>

cash private  placement fee of $9,000.  The February  Financing was conducted in
accordance  with Section 4(2) of the Securities Act and Rule 506 of Regulation D
under the Securities Act.

         In April 2006, the Company completed a private placement of convertible
notes and  warrants  (the "April  Financing").  The gross  proceeds of the April
Financing  totaled  $1,550,000.  Pursuant  to the April  Financing,  the Company
issued  $1,550,000  of  principal  amount  of 9%  convertible  notes,  which are
convertible  into an  aggregate of 516,667  shares of Company  common stock at a
price of $3.00 per share,  and  warrants  to purchase  an  aggregate  of 258,333
shares of Company common stock at $4.00 per share. These warrants were valued at
$557,900  using  the  Black  Scholes  Model,  assuming  a life of  three  years,
volatility of 489%,  and a risk free borrowing rate of 4.88% and will be charged
to interest  expense over the life of the debt commencing in 2006. In connection
with  this  financing,  the  Company  paid a legal and fees  $82,000.  The April
Financing was conducted in accordance  with Section 4(2) of the  Securities  Act
and Rule 506 of Regulation D under the Securities Act.

         The  proceeds  from the  convertible  bridge  notes  were  used to fund
operations,  maintain  compliance with the periodic  filing  requirements of the
Securities  and Exchange  Commission,  as well as to  consummate  the  Company's
acquisition of Kirk Pharmaceuticals, LLC and its affiliate ANDAPharm, LLC.

         All purchasers  represented that they acquired the securities for their
own  accounts.  A legend was placed on the stock  certificates  stating that the
securities have not been registered  under the Securities Act and cannot be sold
or  otherwise  transferred  without an  effective  registration  or an exemption
therefrom.  All  purchasers of the Company's  securities  are either  accredited
investors or employees of the Company.


ITEM 3.        DEFAULTS UPON SENIOR SECURITIES.

         None.

ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         None.


ITEM 5.        OTHER INFORMATION.

         InCon Technologies, Inc., a wholly-owned subsidiary of the Company, and
Asia Pacific Investment Holdings Limited (collectively,  the "Sellers"), entered
into a Purchase  and Sale  Agreement,  dated as of October  31, 2005 (the "InCon
Purchase  Agreement"),  pursuant  to which  the  Sellers  agreed  to sell  their
respective  fifty percent (50%)  ownership  interests in InCon  Processing,  LLC
("InCon"),  to InCon  International,  Inc. in exchange for all of the membership
units of Bali Holdings,  LLC ("Bali") which are owned by N.P. Shaikh  ("Shaikh")
and John R. Palmer ("Palmer"). The sale was made upon the

<PAGE>

Company's  determination  that  InCon's  operations,  high vacuum  distillation,
production  toll  work and  process  development,  would no  longer  comprise  a
material element in the Company's business strategy.

         Pursuant to the InCon  Purchase  Agreement,  the Sellers have agreed to
provide  consulting  services  to  InCon  for a  term  of  three  (3)  years  in
consideration  for an annual  consulting fee in the amount of the lesser of: (a)
One Hundred Thousand Dollars  ($100,000.00) and (b) twenty-five percent (25%) of
InCon's annual earnings before  interest,  taxes,  depreciation and amortization
over the five (5) years  beginning  on  October  31,  2005  ("Consulting  Fee");
provided  however,  that the total payments to each of the Sellers in respect of
the   Consulting   Fee  shall  not  exceed  Three   Hundred   Thousand   Dollars
($300,000.00).  The Consulting Fee is subject to certain acceleration provisions
as provided in the Purchase Agreement.

         As a  condition  to  the  Closing  of  the  sale  of  InCon  membership
interests, InCon is obligated to complete the development of certain tocotrienol
processing technology (the "Technology") and to convey the sole right, ownership
and  interest in the  Technology  to the Sellers who shall  thereafter  have the
exclusive  right  to  patent,  license  or  sell  the  Technology  in  its  sole
discretion.  On April 30, 2006,  InCon  delivered the Technology to the Sellers,
and the Sellers  assigned and  transferred  all rights,  title,  and interest in
InCon  Processing  to  InCon  International,   Inc.  The  Company  recorded  the
disposition  of its  investment  in InCon by valuing  the 56,000  shares that it
received in treasury  stock at $3.30 per share,  or  $184,800  aggregately,  and
recognized  a loss on  investment  of  $923,839.  The Company did not assign any
value to the Technology received, as it still requires a substantial  investment
by the Company before it can be patented.

ITEM 6.        EXHIBITS.

     (a)       Exhibits

               31.1      Certification  of Chief Executive  Officer  pursuant to
                         Rules   13a-14(a)  and  15d-14(a)  of  the   Securities
                         Exchange Act

               31.2      Certification  of Chief Financial  Officer  pursuant to
                         Rules   13a-14(a)  and  15d-14(a)  of  the   Securities
                         Exchange Act

               32.1      Certification of Chief Executive Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002

               32.2      Certification of Chief Financial Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002

<PAGE>

     (b)       Reports on Form 8-K

               (1)       Form 8-K filed on June 12, 2006 regarding the Company's
                         announcement  that it has initiated the process for its
                         third controlled-release generic drug candidate.

               (2)       Form 8-K/A filed on May 31, 2006  regarding  amendments
                         to the Exhibits of its May 26, 2006 Form 8-K filing.

               (3)       Form 8-K filed on May 26, 2006  regarding  consummating
                         the  acquisition  of Kirk and raising $21.25 Million in
                         Financing.

               (4)       Form 8-K filed on May 19, 2006  regarding  the addition
                         of new Key Management joining the Company.

               (5)       Form 8-K filed on May 19, 2006  regarding the Company's
                         acquisition of its first  Application for Approval of a
                         Generic Drug with the FDA.

               (6)       Form  8-K  filed  on  April  12,  2006   regarding  the
                         Company's completing the process to change its name and
                         trading symbol.

               (7)       Form  8-K  filed  on  March  29,  2006   regarding  the
                         Company's   announcement  that  it  has  initiated  the
                         process for its second controlled-release  generic drug
                         candidate.

               (8)       Form 8-K filed on March 7, 2006 regarding the Company's
                         intent to change its name to Synovics  Pharmaceuticals,
                         Inc.

<PAGE>

                         SYNOVICS PHARMACEUTICALS, INC.


                                    SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                  SYNOVICS PHARMACEUTICALS, INC.
                                  (Registrant)



Date:  June 21, 2006              By:   /s/ Ronald H. Lane
                                      ------------------------------------------
                                       Ronald H. Lane
                                      (President, Chief Executive Officer, and
                                       Principal Accounting Officer)